General contractor liability insurance is a policy that protects contractors' assets and income. The Associated General Contractors of America report revealed that the construction industry employs over 7 million people and has more than 680,000 employers. It helps establish nearly $1.3 trillion in structures annually. Consider investing in proper commercial insurance coverages to protect your business in this industry.
What Is General Contractor Liability Insurance?
As a general contractor, your business is exposed to multiple liabilities day-to-day, such as injury or property damage to a third party. General liability insurance is a policy that protects your assets in case of such incidents. It usually covers the following:
- Bodily injury: GL insurance can pay for third-party medical expenses, including ongoing costs, such as if a passerby sustains an injury at your worksite.
- Property damage: Liability insurance can cover repair costs if your employee accidentally causes damage to a neighboring house.
- Advertising injury/defamation: GL protects you when you're sued for libel, slander, copyright breach, or other forms of personal injury.
Why You Should Have Contractors' General Liability Insurance (GL)
Operating in the construction industry without a liability policy puts your assets and business at risk. A major occurrence could put you out of business if it finds you without proper coverage. To be on the safe side, get general liability insurance for your company's daily risks.
Differences Between General Liability and General Contractor Insurance
GL and general contractor insurance provide the same type of coverage; both are business liability insurance forms.
Crucial Business Insurance Policies for General Contractors
Besides general liability insurance, consider purchasing these other important policies for general contractors:
- Professional liability insurance: Also known as contractors' errors and omissions insurance, this policy covers your company against your clients' claims, such as negligence, processional mistakes, or substandard/incomplete work. It can pay for your attorney fees and related lawsuit costs.
- Commercial auto insurance: This policy covers the vehicles you use for work-related activities against the risk of accident or theft. It pays for repair to your car or other property after damage and can cover the personal and third-party injury.
- Inland marine policy: This insurance protects the contractor's tools at the job site and during transport to and from the site.
- Commercial property: Get this insurance if you have a physical office or storage for your work equipment. The policy protects your tools, inventory, company cars, business records, and more.
- Workers' compensation insurance: Depending on your state's laws, this policy may be mandatory for contractors. It covers medical costs and lost wages for employees injured on the job.
- Builder's risk policy: If your construction tools, materials, or fixtures are damaged or lost after a covered event, this coverage will kick in.
Other Insurance Considerations for a General Contractor
- Surety bonds: You may need to purchase a surety bond as a prelicensing requirement or to get government contracts. This way, you guarantee you'll complete the project per your contractual obligations.
- Liability insurance proof: Many prospective clients may require you to provide your liability insurance certification alongside your bid on a project. The document should show your coverage and list any additional insured.
How Much Does General Liability Insurance Cost?
Factors that can determine your contracting business' liability insurance costs include:
- Type of coverage and bundled policies
- Your equipment's value
- Type of contract work you do
- Business location
- Annual payroll and the number of your employees
- Your previous insurance claims
- Type and number of your commercial vehicles
Contact Little & Sons to Get the Adequate General Liability Coverage
To get an accurate quote for your general contractor insurance, contact the experts at Little & Sons Insurance Services today. We will be happy to help you find the proper coverage for your unique risks.
